Lib Dems plan to replace Treasury with growth department

"The party said the new Department for Growth would be tasked with boosting long-term prosperity, improving living standards and easing cost-of-living pressures. Under the plans, the new department would assume responsibilities for business and trade, while a new department for public spending would also be created. Setting out the policy at a news conference, the party's deputy leader Daisy Cooper said the move would end the "doom loop" of "short-term Treasury tax grabs" and allow the government to focus on economic growth."

"As the UK government's economic and finance ministry, the Treasury controls public spending and sets the direction of the UK's economic policy. But the powerful role of the Treasury has been flagged as a blocker on economic growth and the political will of governments past and present. Cooper - the party's Treasury spokeswoman - said the Labour government and others before it had fallen victim to what she called "Treasury brain"."

The Liberal Democrats propose breaking up the Treasury, creating a Department for Growth based in Birmingham and a separate department for public spending. The Department for Growth would take on business and trade responsibilities and aim to boost long-term prosperity, improve living standards and ease cost-of-living pressures. The proposal criticizes the Treasury's dominant role as blocking growth, citing short-term tax decisions and a mindset described as "Treasury brain." The plan emphasizes shifting economic focus away from London toward other cities and regions to address regional imbalance and prioritize sustained economic expansion.

Read at www.bbc.com